When a Firm Can Pass on Its Cost Increases to Its

question 38

Multiple Choice

When a firm can pass on its cost increases to its customers and revenue decreases to its suppliers,it has a ________ hedge.

• A)natural
• B)basis
• C)vertical
• D)horizontal
• E)hidden

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Definitions:

Canadian Goose

A large wild goose species with a distinctive black head and neck, white cheeks, and a brown body, native to arctic and temperate regions of North America.

Quotients

The results of dividing one quantity by another.

Ratios

A mathematical expression that compares two or more numbers, showing the relative size of one quantity to another.

Totals

The sum or aggregate amount resulting from the addition of individual elements, numbers, or variables.